ST. JOHN’S, Newfoundland, June 28, 2018 (GLOBE NEWSWIRE) -- Kraken Robotics Inc. (TSX-V:PNG) (OTCQB:KRKNF) is pleased to announce that the non-brokered private placement offering (the "Offering") announced on June 20, 2018 closed today for aggregate gross proceeds of $2.3 million.
“Kraken is very pleased to have completed this financing with our customer Ocean Infinity,” said Karl Kenny, Kraken’s President and CEO. “The financing strengthens our balance sheet with a patient investor and supportive customer and validates our strategic efforts to build a vertically integrated offering of sensors, software and systems for the underwater robotics market. We will continue to work with Ocean Infinity to help provide its customers an efficient, differentiated service offering, leveraging a variety of products and services developed by Kraken.”
The Offering was comprised of 11,520,000 units (the "Units") at a purchase price of $0.20 per Unit for aggregate gross proceeds of $2,304,000. Each Unit consisted of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"), with each Warrant exercisable to acquire one common share of Kraken at $0.40 for a period of 36 months from the date of issuance, subject to adjustment and acceleration. All proceeds raised from the sale of the Units will be used by Kraken to build inventory and general corporate and working capital purposes.
The securities issued pursuant to the Offering are subject to a four-month statutory hold period commencing from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada. In addition, Ocean Infinity has agreed to an additional 32 month hold period resulting in a combined 36 month hold period.
The Warrants are subject to an acceleration clause whereby if the closing trading price of the common shares is greater than $0.50 for 20 consecutive trading days after the date that is four months and a day after the closing of the Offering, Kraken may, at its option, elect to accelerate the expiry date of the Warrants to 20 calendar days following the delivery of a written acceleration notice.
Kraken also announces that it has issued 200,000 options to a new employee. These options have an exercise price of $0.21 and have a three-year term.
About Ocean Infinity
Ocean Infinity is a next generation offshore ocean survey and ocean exploration company using a fleet of autonomous underwater vehicles. Ocean Infinity provides a comprehensive seabed exploration system that is highly efficient and permits multi-tasking. Their comprehensive range of on-board systems and equipment permit continuous operation through to project completion, which gives them the capability to inspect, repair or recover discoveries made during a survey, eliminating the need for a second vessel. Their approach dramatically increases productivity and reduces downtime – saving clients time and money with their ’one stop shop’ multi-purpose vessel. For more information, please visit https://oceaninfinity.com/
About Kraken Robotics Inc.
Kraken Robotics Inc. (TSX.V:PNG) (OTCQB:KRKNF) is a marine technology company that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. The company is headquartered in St. John’s, Newfoundland with offices in Dartmouth, Nova Scotia; Bremen, Germany; and Fairfax, Virginia. Kraken is ranked as a Top 100 marine technology company by Marine Technology Reporter. For more information, please visit www.krakenrobotics.com, www.krakenrobotik.de, www.krakenpower.de. Find us on social media on Twitter (@krakenrobotics), Facebook (@krakenroboticsinc) and LinkedIn.
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release, and the OTCQB has neither approved nor disapproved the contents of this press release.
For further information, please contact:
Greg Reid, Chief Financial Officer
Sean Peasgood, Investor Relations
Glenda Leyte, Marketing Manager
(709) 757-5757 extension 288
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